THE MONTHLY B u s in e s s R e v ie w Covering Business and Agricultural Conditions in the Sixth Federal Reserve District.

FEDERAL RESERVE BANK OF JOS. A. McCORD, Chairman of the Board and Federal Reserve Agent WARD ALBERTSON, Assistant Federal Reserve Agent

VOL. 9 ATLANTA, GA., MARCH 29, 1924 No. 3

BUSINESS CONDITIONS IN THE UNITED STATES Prepared by the Federal Reserve Board Employment at industrial establishments increased in February and the output of basic commodities was slightly larger. Distribution, both at wholesale and retail continued large; wholesale prices were somewhat higher; and there was a further increase in the volume of borrowing for commercial purposes. Production The Federal Reserve Board's Index of production in basic industries, adjusted to allow for length of month and other seasonal variation, increased less than one per cent in February. Production of pig iron, steel ingots, and flour increased, while mill consumption of cotton and production of cement and lumber declined. Factory employment advanced one per cent in February, following successive decreases during the three preceding months. Increases in working forces were reported by most industries and were particularly large at iron and steel plants, automobile factories and textile finishing establishments. Fuller employment through reduction of part time work is indicated by an increase of over 5 per cent in average weekly earnings. Building activity was slightly less than in January, though contracts awarded were seven per cent larger than a year ago. Trade Railroad shipments in February were in greater daily volume than in January and car loadings of practically all important commodities were larger than a year ago. The daily average volume of wholesale business in­ creased about five per cent in February but was slightly smaller than a year ago. Sales of meat, dry goods, and hardware were larger than in , while sales of shoes were smaller. Department store sales in Febru­ ary averaged about the same daily volume as in January and about 8 per cent more than a year ago, while merchandise stocks at these stores at the end of the month were six per cent above last years level. Business of mail order houses and chain stores also showed increased activity in comparison with January. Prices Wholesale prices, as measured by the index of the Bureau of Labor Statistics, advanced slightly in February. Prices of fuel, metals, and building materials increased, while prices of farm products, clothing, and chemicals declined. During the first two weeks in March price declines occurred in wheat, cotton, silk, hides, and rubber, and price advances in hogs, copper and crude petroleum. Bank Credit The volume of borrowing for commercial purposes at member banks in leading cities in the early part of March continued the increase which began in the latter part of January, and on March 12 total loans of the reporting banks were higher than at any time since the seasonal peak at the turn of the year, and about $275,000,000 higher than a year ago. At the Federal Reserve Banks during the four week period ending March 19, a further decline in the volume of discounts for member banks and of acceptances was offset by an increase in the holdings of United States Securities, so that total earning assets were at about the same level as in February. Federal Reserve Note Circulation continued to decline, while the total money in circulation increased. Easier money conditions were reflected in a slight decline in rates for commercial ppaer to 4% per cent and also in lower rates for bankers acceptances and reduced yields on treasury certificates. The March offering of $400,000,000 of one year treasury certificates bearing interest at 4 per cent as compared with 4% per cent on Digitizeda similar for FRASER issue sold in December, was over subscribed. http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis 2 THE MONTHLY BUSINESS REVIEW

WHOLESALE PRICES PERCENT PtR.CE.MT JW 300

cUU 200

t•UVJ nr* ’00

o o 1919 ' 1920 1921 1922 1923 192**

Index of 22 basic commodities corrected for seasonal Index of U. S. Bureau of Labor Statistics. (1913=100 variation. (1919=100) Latest figure February 121 Base adopted by Bureau) Latest figure February 152

Index for 33 manufacturing industries. (1919=100) Weekly figures for 12 Federal Reserve Banks. Latest figure February 99. Latest figure March 19.

SIXTH DISTRICT SUMMARY for the approaching season are considerably behind for this time of the year. The wet weather has also con­ Aside from the effects which bad weather conditions and the irregular cotton market have had during the tinued to adversely affect to some extent the volume past month or two, the general situation in this district of wholesale and retail trade, while conditions in the continues on a satisfactory basis. Rains during the cotton manufacturing industry are still more or less past month have continued to interfere with farm unfavorable because of the irregular market for raw Digitizedoperations, for FRASER and in most of the district preparations cotton and the lagging demand for cotton products. http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis THE MONTHLY BUSINESS REVIEW 3

Taking seasonal factors into consideration, however, situation continues fairly satisfactory, and there is and the fact that February was a short month, business very little unemployment reported throughout the statistics for the month show favorable comparisons district. in a majority of instances. Retail trade is always smaller in volume in February than in January, but RETAIL TRADE figures for show sales in this district Sales during February by 43 reporting department more than seven per cent greater than in the same stores in this district were on the whole 7.3 per cent month last year. Of the nine lines of wholesale trade greater than during the same month last year. De­ reporting to the Federal Reserve Bank, five lines creases at Atlanta and Jackson were more than offset showed increased sales in February compared with Jan­ by increased sales in other reporting cities. Chatta­ uary, while six lines reported sales larger than in Feb­ nooga continues to report the most favorable compari­ ruary a year ago. Month to month comparisons are son with the corresponding month last year. Stocks more than likely to reflect seasonal influences to a of merchandise on hand at the end of February in­ considerable extent, but increases in the volume of creased 12.9 per cent during the month, and were 12.2 sales over the same month a year ago reflect funda­ per cent higher than at the close of February 1923. mental improvement or changes in the level of prices, The rate of turnover, indicated by the relation of stocks and in this instance wholesale prices, according to the to sales, was 2 2 times per year in February, compared United States Bureau of Labor Statistics, are now with nearly 2.4 times per year in January.* lower than they were at this time last year. The index number of sales for the district in Febru­ Building permits continue to reflect a large program ary stands at 84.0, which is higher than February of of construction, and the index number for twenty cities 1923 or 1922, and is only very slightly lower than the in this district for February stands at 236.9, compared figures of 86.4 for and 86.6 for Febru­ with 224.3 for February last year. The employment ary 1920.

CONDITION OF RETAIL TRADE—FEBRUARY Sixth Federal Reserve District

Percentage of Increase or Decrease (3) (4) (1) (2) Comparison of net sales with Percentage of average stocks Percentage of outstanding those of corresponing Stocks at end of Feb. 1924 at end of each month orders at end of Feb. period last year compared with from Jan. to date (2 1924 to total purchases months) to average during calendar A B A B monthly sales year 1923 Feb< Jan. 1 to Feb. Jan. over same Feb. 29 1923 1924 period Atlanta (4) ...... —15.0 — 9.0 — 7.3 +17.8 554.5 4.7 Birmingham (5) ...... + 5.6 + 8.6 +31.0 +24.3 558.6 4.5 Chattanooga (6) ...... +37.5 +36.2 +38.3 + 9.5 606.3 6.0 — 3.8 + 10.7 + 6.8 + 19.5 597.9 X Nashville (5) ...... + 6.7 + 4.8 + 5.1 + 4.9 546.5 7.8 New Orleans (5) ...... + 8.4 + 4.5 +10.7 +10.8 516.1 8.6 Savannah (3) ____ + 2.0 + 4.0 — 0.9 +15.2 667.6 8.0 Other Cities (12)...... + 10.6 + 7.1 + 8.0 + 9.3 587.1 6.1 DISTRICT (43)...... + 7.3 + 6.7 + 12.2 + 12.9 551.8 6.8 WHOLESALE TRADE during February stood at 81.0 compared with 83.9 in The volume of wholesale trade in the district in Febru­ January, and 78.0 in February last year. The number ary, on the whole, was larger than in January, although for February this year is higher than was attained in the index number of the aggregate sales in the four February during the past three years. originally reporting lines was slightly smaller, due to A comparison of total sales, by lines, is shown in the following table: declines in groceries and hardware. Feb. 1924 compared with: The largest decrease, compared with January, Jan. 1924 Feb. 1928 Groceries (40 firms) ...... — 2.1 +11.5 was shown by 32 wholesale hardware firms whose Dry Goods (31 firms) ...... + 1.3 — 6.1 February sales were 9.6 per cent lower than in January. Hardware (32 firms) ...... — 9.6 + 4.6 Furniture (21 firms) ...... +24.2 + 7.9 The increases over January shown in dry goods and Electrical Supplies (10 firms) + 1.3 +25.1 Shoes (10 firms) ...... +11.8 —12.8 electrical supplies were small, but shoes, furniture and Stationery (4 firms) ...... — 8.7 — 1.8 farm implements reported more substantial gains. Drugs (6 firms) ...... — 6.2 +14.7 Compared with February 1923, six of these lines showed Farm Implements (7 firms) .... +36.4 +11.8 increased business ranging from 4.6 per cent in hard­ ware to 25.1 per cent in electrical supplies. Groceries Sales in February by 40 wholesale grocery firms The index number of total sales in four principal lines were on the whole 2,1 per cent lower than in January, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis 4 THE MONTHLY BUSINESS REVIEW

due to decreased volume of sales at Atlanta, Jackson­ sales by 29 of these reporting firms stands at 82-3 for ville and New Orleans. Compared with February 1923 February this year, compared with 90.3 for January, all cities showed increased sales, ranging from 4'.7 per and 74,2 for February last year. It is also higher than cent at New Orleans to 29.3 per cent at Meridian. The for February of 1922 or 1921. Reports indicate some index number for February, based on sales by 39 firms slight price recessions, but state that on the whole and related to monthly average sales in 1919, was 86.6 prices are firm. Collections are stated by many re­ compared with 88.7 in January, and with 81.5 for Febru­ porting firms to be good. ary last year. Comparisons of February sales by cities are indicated in the following table: Collections were reported good by 11 firms, fair by Feb. 1924 sales compared w ith : 11, and poor by 1. Conditions in the trade have not Jan. 1924 Feb. 1923 Atlanta (3 firms) ...... * —10.6 + 6.2 changed mtaerially during the month, small price ad­ Chattanooga (3 firms) ...... — 5.2 + 4.1 vances on some articles being accompanied by slight Jacksonville (3 firms) ...... — 5.1 + 5.2 Montgomery (3 firms) ...... —28.9 +10.1 declines on others. Percentage comparisons by cities Nashville (4 firms) ...... +17.5 + 3.9 New Orleans (5 firms) ...... —15.4 — 1.7 are shown below: Other Cities (11 firms) ...... —15.3 +10.4 Feb. 1924 compared with: DISTRICT (32 firms) ...... — 9.6 + 4.6 Jan. 1924 Feb. 1923 A tlanta (5 firms) ...... — 6.0 Furniture Jacksonville (4 firms) ...... — 5.7 +15.8 Meridian (3 firms) ...... -f 5.7 February sales by 21 wholesale furniture firms in­ New Orleans (10 firms) ...... — 7.1 4* 4.7 Vicksburg .(4 firms) ...... +14.8 +15.0 creased 24.2 per cent over January, and were nearly Other Cities (15 firms) ...... 4* 0.9 4-11.4 eight per cent higher than in February last year. DISTRICT (40 firms) ...... — 2.1 +11.5 These reports indicate that conditions in the trade have Dry Goods not changed materially during the month, most of them reporting prices as stationary, while two report While the decline in the price of raw cotton, and the advances on metal beds, and one or two others report unfavorable weather, have interfered to some extent slight declines on some articles. Most of the reports with sales of dry goods, a number of reporting firms state that the outlook for spring business is gooct state that they expect better business when spring Comparisons of sales by reporting cities is shown weather arrives. February sales were slightly larger below: than in January, but five per cent lower than in Febru­ Feb. 1924 sales compared w ith: Jan. 1924 Feb. 1923 ary last year. The index number for February stood A tlanta (7 firms) ...... +34.5 • +21.3 at 77.3, compared with 77.1 for January, and with Chattanooga (3 firms) ...... +28.7 — 3.8 Nashville (3 firms) ...... +20.6 — 1.8 80.6 for February last year. It was higher than for Other Cities (8 firms) ...... +16.4 +13.3 February of either 1922 or 1921. The reports indicate DISTRICT (21 firms) ...... +24.2 + 7.9 that prices on some articles have declined to some Electrical Supplies extent because of the lower price /of raw cotton February sales of electrical supplies by 10 wholesale but on the whole they indicate that the market is in firms were a little higher than in January, and 25.1 an unsettled condition with buying restricted, to a per cent greater than in February 1923. The small very large extent, to current and very near future re­ increase over January is due to a larger volume of quirements. Collections in February were reported good sales at Atlanta, as reports from New Orleans and from by 2 firms, fair by' 17, and poor by 1. Comparisons of “Other Cities” showed declines. Increases over sales in February by reporting cities are shown below: February last year were indicated in every report. The reports state that present, conditions are better Feb. 1924 sales compared w ith : Jan. 1924 Feb. 1923 than were expected, and that the outlook is satis­ A tlanta (4 firms) ____ —12.1 — 7.9 factory. Collections are reported good by four firms Jacksonville (4 firms) , — 5.6 — 7.4 Knoxville (3 firms) .... +18.0 + 9.9 and fair by six firms. Comparisons of February Nashville (3 firms) .... — 0.3 —18.8 sales are indicated below: New Orleans (5 firms) , — 5.2 — 1.6 Other Cities (12- firms) + 4.6 — 8.6 Feb. 1924 sales compared w ith : DISTRICT (31 firms) + 1.8 — 5.1 Jan. 1924 Feb. 1923 A tlanta (3 firms) ...... + 7.0 +21.7 New Orleans (3 firms) ...... — 8.8 4-18.6 Hardware Other Cities (4 firms) ...... — 0.7 438.0 DISTRICT (10 firms) ...... + 1.3 +25.1 Due partly to unfavorable weather, which has pre­ vented farm work in most of the district to a great Shoes extent, sales by wholesale hardware fiwms during Sales during February by ten wholesale shoe firms January and February have not been up to expecta­ were nearly twelve per cent larger than in January, tions. February sales were nearly ten per cent lower and showed continued recovery from the low point than in January, but almost five per cent higher than reached in December. Current figures continue to run Digitizedin Februaryfor FRASER last year. The index number of harware below last year, however, February showing a de- http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis THE MONTHLY BUSINESS REVIEW 5

crease of 12.8 per cent compared with February 1923. The number of pecan trees of bearing in Florida The index number for February shtands at 54.4, com­ has been increasing from ;ftear to year, and is now pared with 48.6 in January, and while lower than the estimated at 138,000 as against 135,000 last year. index number of 61.6 for February last year, was Of the trees of bearing age this year, about 63 per higher than February of 1922 or 1921. The reports cent, or 87,000, are improved varieties. It is estima­ state that no material changes have taken place during ted that between eight and nine thousand threes were the month, and that prices are stationary. Sales com­ set out during the past season. parisons are shown below: COTTON MOVEMENT Feb. 1924 sales compared w ith: Sixth Federal Reserve District Jan. 1924 Feb. 1923 (Bales Atlanta (3 firms) ...... •...... +13.5 —20.9 Feb. 1924 Jan. 1924 F eb .1923 Other Cities (7 firms) ...... +11.1 — 8.5 Receipts—Ports: DISTRICT (10 firms) ...... +11.8 —12.8 New Orleans ...... 110,019 176,371 127,251 Mobile ...... 4,605 7,346 2,669 Sales by four wholesale stationery firms were lower Savannah ...... 27,039 36,065 27,003 Interior Towns: in February than in either the preceding month of A tlanta ...... 9,369 11,471 16,066 the corresponding month a year ag

Season through other miscellaneous loans, resulting in a net decline of Feb. 1924 Feb. 1923 Feb. 1924 Feb. 1923 Oranges 4...... 4,281 * 4,118 19,101 17,787 nearly four millions of dollars. Holdings of United Grapefruit ...... 2,635 2,148 11,576 10,472 States securities and other stocks and bonds did not Tangerines ...... 118 0* 1,001 0* Total fcitrus fluctuate materially, and the net result for the four fruits ...... 7,034 6,266 31,678 28,259 Lettuce ...... 163 507 1,642 2,040 weeks was a decline of $3,919,000 in the total loans, Vegetables ...... 443 480 2,198 1,096 discounts and investments of these 39 member banks. Tomatoes ...... 1,120 795 1,750 1,079 Peppers ...... 77 101 614 229 Compared with figures for March 7, 1923, current Cabbage ...... 988 160 1,786 323 figures show an increase of $20,194,000 in loans and Pineapples ...... 1 1 9 5 Celery ...... 1,673 1,225 2,972 1,789 discounts, and of $21,480,000 in total loans discounts Strawberries ...... 214 438 385 550 Total vegeables 4,679 3,707 11,356 7,111 and investments. Both demand and time deposits * Tangerines included with oranges. registered small increases over figures for , and while time deposits were larger than at the same SUGAR time las* year, demand deposits showed a decline. Ac­ Although interrupted by rains, plowing and planting commodation at the Federal Reserve Bank was a little of sugar cane in Louisiana has made considerable pro­ larger than a month ago, and nearly four times the gress, and conditions present a favorable outlook with figures for , as indicated in the following good prospects for the coming season. Indications tables: point to a somewhat larger acreage in cane this year Member Banks in Selected Cities (000 Omitted th a n la s t. March 5, 1924 Feb. 6 1924 March 7, 1923 SUGAR MOVEMENT—FEBRUARY Bills Discounted: Raw Sugar—Pounds Secured by Gov’t Obligations.... .$ 8,838 $ 8,972 $ 7,395 Feb. 1924 Jan. 1924 Feb. 1923 66,499 62,537 61,971 Receips: 251,682 359,411 337,459 New Orleans ...... 119,632,725 74,348,116 101,508,002 Savannah ...... 37,946,670 7,387,852 45,269,150 427,019 430,920 406,825 M eltings: 39,387 38,457 40,559 New Orleans ...... 117,417,340 76,665,170 113,006,131 39,396 40,344 36,938 Savannah ...... 35,580,664 19,768,271 32,876,799 Stocks: Total loans, discounts and New Orleans ...... 35,720,533 33,505,148 13,461,885 505,802 509,721 484,322 Savannah ...... 4,345,728 1,979,722 12,762,022 178,252 176,144 166,048 Refined Sugar—Pounds 282,038 281,888 286,632 Feb. 1924 Jan. 1924 Feb. 1923 Accommodation at Federal Shipm ents: Reserve Bank ...... 23,256 20,169 6,106 New Orleans ...... 113,679,273 80,156,199 132,267,383 Savannah ...... 26,211,615 20,582,013 32,695,917 The weekly statement of the Federal Reserve Bank Stocks: of Atlanta on March 12 showed increases over figures New Orleans ...... 57,625,779 59,959,765 23,764,801 Savannah ...^...... 9,098,038 1,338,664 5,351,676 a month earlier in loans secured by Government RICE MOVEMENT—FEBRUARY obligations of $2,722,000, and other bills, of $4,956,000, Rough Rice (Sacks) Port of New Orleans which, taken with a small increase in bills bought in Feb. 1924 Jan. 1924 Feb. 1923 Receipts ...,...... 40,072 86,844 51,284 the open market, resulted in a gain of $8,135,000 in Shipments ...... 53,206 73,093 43,961 the volume of bills on hand. Holdings of United Stocks ...... 34,897 48,031 64,249 States securities c^oubled during that period. Federal Clean Rice (Pockets) Port of New Orleans Receipts ...... 192,560 234,866 203,795 Reserve Notes in actual circulation increased $1,950,000 Shipments ...... 203,225 228,712 308,663 during this four weeks period. Comparison with Stocks ...... j...... 181,276 191,940 175,180 figures for March 14 last year show that bills dis­ Receipts of Rough Rice (Barrels) Season to Last Season counted were considerably more than double the loans to at that time, while holdings of govement securities Feb. 1924 Feb. 29, 1924 Feb. 28,1923 are apreciably smaller. Note circulation is about Association Mills ...... 310,404 4,568,587 4,879,706 New Orleans Mills...... 40,072 656,309 1,017,647 $8,500,000 higher now than at this time last year. Outside Mills ...... 229,446 1,651,336 1,771,203 The following figures show comparisons of important items in the weekly statement of March 12, with 579,922 6,876,232 7,668,556 figures of a month ago and the same time last year: Distribution of Milled Rice (pockets) Association Mills ...... 562,924 3,974,751 4,110,454 Federal Reserve Bank New Orleans Mills ...... 69,865 648,914 1,151,178 (000 Omitted) Outside Mills ...... 293 1,469,623 1,278,245 Bills Discounted: March 12, 1924 Feb. 13, 124 March 14,1923 926,545 6,084,288 6,539,877 Secured by Govt, obligations....^ 10,648 7,926 $ 2,001 Stock on Hand All Other ...... 33,112 28,156 13.993 . . . March 1,1924 March 1,1923 Association Mills ...... 1,056,585 1,262,517 Total bills discounted...... 43,760 36,082 15.994 New Orleans ...... 212,203 236,923 Bills bought in open market...... 10,161 9,704 11,532 Outside Mills ...... 411,585 539,700 Total bills on hand...... 53,921 45,786 27,526 1,680,373 2,039,140 United States securities ...... 5,360 2,673 15,061 Total earning assets...... 59,281 48,458 42,588 FINANCIAL Cash reserves ...... 133,225 139,957 143,333 Total deposits ...... 63,106 61,389 61,318 Weekly reports made to the Federal Reserve Bank by P. R. Notes in actual circulation 132,888 130,938 124,317 Reserve Ratio ...... 68.0% 39 member banks in selected cities of the district show 72.8% 77.2% that an increase in loans on stocks and bonds, between Saving deposits for February, reported to the Federal February 6 and March 5, was more than offset by de­ Reserve Bank by 96 banks in the district, are shown in clines in loans based on government obligations and the following table: Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis THE MONTHLY BUSINESS REVIEW 7

SAVINGS DEPOSITS—FEBRUARY 1924 Comparison of Comparison of Feb. 1924 Jan. 1924 Feb. 1924-Jan. 1924 Feb. 1923 Feb. 1924-1923 Atlanta (7 banks $ 30,912,057 $ 31,193,856 — 0.9 $ 29,075,260 — 6.3 Birmingham (5 b* 21,404,472 21,404,797 — 0.0 19,893,350 + 7.6 Jacksonville (5 bs 19,568,971 19,314,539 + 1.8 17,460,471 + 12.1 Nashville (11 ban' 16,254,793 16,024,114 + 1.4 13,584,288 + 19.7 New Orleans (9 1 49,742,910 46,616,144 4- 6.7 46,736,941 + 6.4 Other Cities (59 86,933,547 85,301,893 + 1.9 77,287,519 + 12.5 224,816,750 219,855,343 + 2.3 204,037,829 +10.2

DEBITS TO INDIVIDUAL ACCOUNTS Preliminary figures for February, and corrected Sixth Federal Reserve District figures for January are shown below: Week Ended Mar. 12, 1924 Feb. 13,1924 Mar. 14,1923 1924-1923 1922-1923 •Im ports: Albany ...... $ 859,000 $ 673,000 $ 1,700,000 A tlanta ...... 29,915,000 29,016,000 31.245.000 February ...... $ 335,000,000 !& 303,412,419 Augusta ...... 6,215,000 7,757,000 9.482.000 January ...... 295,550,706 329,253,664 Birmingham ...... 25,564,000 25,170,000 23.272.000 Eight months ending with Brunswick ...... 654,000 678,000 621,000 February ...... 2,334,800,383 2,326,005,148 Chattanooga ...... 8,410,000 8,394,000 8.838.000 E xports: Columbus ...... 2,534,000 2,596,000 3.735.000 February ...... 367,000,000 306,957,419 Dothan ...... 688,000 729,000 615.000 January ...... 395,170,129 335,416,506 Elberton ...... 205,000 238,000 304.000 Eight months ending with Jackson ...... 3,754,000 3,756,000 3.181.000 February ...... 2984,255,075 2,663,548,111 Jacksonville ...... 13,554,000 12,325,000 13.056.000 Knoxville ...... 7,376,000 6,379,000 6.728.000 New Orleans Macon ...... 4,484,000 4,459,000 5.201.000 Meridian ...... 2,501,000 2,348,000 2.506.000 The value of merchandise imported through the port Mobile ...... 6,541,000 6,482,000 6.452.000 Montgomery ...... 5,337,000 5,182,000 5.605.000 of New Orleans during January amounted to $15,699,- Nashville ...... 18,864 14,608,000 16.335.000 616, an increase of two millions of dollars over Decem­ Newnan ...... 390,000 402,000 558.000 New Orleans ...... 80,952,000 77,642,000 70.192.000 ber, and of more than three and a half millions over Pensacola ...... 1,814,000 1,629,000 1.512.000 Savannah ...... 8,407,000 9,430,000 10.310.000 February last year. Coffee imports were slightly lower Tampa ...... - 8,840,000 7,500,000 7.614.000 in volume and value than in February 1923, but sugar Valdosta ...... 1,065,000 1,004,000 1.174.000 Vicksburg ...... 1,695,000 1,895,000 1.951.000 imported amounted to 59,613,928 pounds valued at $2,- 872,760, compared with 7,382,154 pounds valued at Total ...... $240,618,000 $230,292,000 $232,187,000 $225,339 imported in February last year. Creosote oil COMMERCIAL FAILURES and mineral oil are among other items showing in­ creases, while burlaps, bananas, newsprint paper and Figures compiled by R. G. Dun & Co. show that the molassQs were smaller in volume but larger in value number of commercial failures in the United States than during that month. Mahogany showed in increase during February was somewhat smaller than in Janu­ in volume but a decrease in value. Figures for Feb­ ruary for the last ten years are shown below, for ary, but a little larger than in February 1923, while comparison: the total of liabilities showed declines compared with both of those periods. In the sixth district failures February 1924...... $15,699,616 ...... $ 6,568,004 February 1923...... 12,007,709 ...... 6,256,358 were lower than either the preceding month or the ...... 10,221,268 February 1917...... 9,395,425 February 1921...... 9,157,304 February 1916...... 6,493,557 corresponding month last year, both in number and ...... 19,081,631 February 1915...... 4,163,288 in liabilities. Some of the principal articles of import during Feb­ Figures for February 1924, with comparison, are ruary are as follows: shown below: Volume Value Coffee, lbs...... 40,045,203 5,297,234 N um ber: Sugar lbs...... Feb. 1924 Jan. 1924 Feb. 1923 59,613,928 2,872,760 Burlaps lbs...... ""Z”! iM10!402 1,443,969 Sixth District ...... 129 136 135 Nitrate of Soda—tons...... 21,504 United States ...... 1,730 2,108 1,508 1,154,962 Liabilities: Gasoline gals...... 11,172,000 878,218 Creosote oil gals...... 4,337,826 778,341 Sixth District ...... $ 2,361,030 $ 2,452,051 $ 4,029,704 Mineral oil gals...... 48,122,900 739,155 United States ...... 35,942,037 51,272,508 40,627,939 Bananas bun...... 1,439,972 508,467 IMPORTS AND EXPORTS Grain Exports Preliminary figures compiled and published by the The volume of grain exports from New Orleans con­ Department of Commerce show increased imports, but tinues to show decline compared with figures for the corresponding period last year, as indicated in the a decline in exports, in February compared with the following figures for February, and for the season since preceding month, but both of these items are larger July 1: than for February of last year. February imports were larger than for any month since last May, and Feb. 1924 Feb. 1923 Feb. 29,1924 Feb. 28.1923 145,100 903,546 5,829,695 22,724,543 had been exceeded only six times during the last five 1,160,042 1,701,776 3,165,304 14,435,876 Oats .... 18,215 66,990 233,295 453,119 years- Exports, on the other hand, were lower in Barley ... 10,428 February than in any of the five months immediately Rye ...... ’’154,285 195j913 525.000 Digitizedpreceding. for FRASER 1,323,357 2,826,597 .9,424,207 38,148,966 http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis 8 THE MONTHLY BUSINESS REVIEW

BUILDING of the cities reported noticeable increases, while in other instances large percentage decreases appear, especially The statement which follows shows the number and in the case of Atlanta, Savannah, Chattanooga and value of permits issued at twenty cities in the sixth Nashville. The decrease at Nashville, however, it district during February. The aggregate value of should be stated, was due to unusually large total for February permits is $8,542,134, an increase of 5.6 per February last year. The index number for February cent over figures for the corresponding month a year, stands at 236.9, compared with 209.2 for January, and and 13.3 per cent larger than for . Some 224.3 for February 1923.

BUILDING PERMITS—FEBRUARY 1924 Sixth Federal 4 Reserve District Percentage of Alterations & Repairs New Buildings Total Total Increase or No. Value No. Value Feb. 1924 Feb. 1923 Decrease

A labam a: Anniston ...... 11 $ 4,415 17 $ 44,125 $ 48,540 $ 37,850 + 28.2 Birmingham ...... 181 93,256 421 1,317,015 1,410,271 567,360 + 148.6 Mobile ...... 51 20,240 31 45,140 65,380 65,750 — 0.6 Montgomery ...... 62 22,601 8 258,350 280,951 35,784 +685.1 F lorida: Jacksonville ...... 210 65,089 83 1,095,950 1,161,039 803,113 + 44.6 Miami ...... 67 49,110^ 257 1,302,790 1,351,900 209,100 +546.5 Orlando ...... 32 33,636 115 163,055 196,690 106,353 + 84.9 Pensacola ...... 52 18,811 4 322,000 340,811 13,163 +2489.2 Tampa ...... 136 27,063 169 263,482 290,545 209,902 + 38.4 Georgia: A tlanta ...... 1,017,473 2,007,558 — 49.3 Augusta ...... 88 5,596 14 136,918 142,514 77,012 + 85.1 Columbus ...... 8 7,440 11 62,650 70,090 89,459 — 10.6 Macon ...... 89 21,208 78 58,746 79,954 89,459 — 10.6 Savannah ...... 15 11,810 39 83,800 97,610 238,025 — 59.0 Louisiana: New Orleans ...... 45 224,060 156 625,700 849,750 680,725 + 24.8 Alexandria ...... 29 6,972 18 46,220 52,192 75,727 — 81.1 Tennessee: Chattanooga ...... 116 91,010 23 151,300 242,310 654,295 — 63.0 Johnson Citv ______1 2,000 17 30,440 32,440 36,625 — 11.4 Knoxville ...... 117 28,210 113 453,090 481,300 647,965 — 25.7 104 31,419 61 298,955 330,374 1,510,887 — 78.1 Total 20 Cities. 1353 $762,935 1,635 $6,759,726 $8,542,134 $8,086,773 + 5.6

LUMBER Feb. 1924 Jan. 1924 Feb. 1923 140 Mills 138 Mills 138 Mills Orders ...... 262,349,070 374,834,418 349,693,622 Production of Southern Pine Lumber has receded Shipments ...... 295,228,680 354,985,536 324,873,650 from about 93 per cent of normal in the second and Production ...... 314,571,147 323,999,406 301,957,332 Normal production these third weeks of February to 88 per cent of normal during mills ...... 331,783,339 342,794,448 350,214,930 Stocks end of Month...... 796,123,698 784,376,734 830,672,460 the last week of that month and the first week of Normal stocks these mills 916,435,193 936,099,169 954,879,389 March. Orders increased from 71 per cent of normal Unfilled orders end of production for the week ended , to 72 per month ...... 237,932,574 290,779,800 455,096,789 cent the following week, then declined to 67 percent, COTTON CONSUMPTION and for the week ended March 7 recovered to. 70 per Feb. 1924 Jan. 1924 Feb. 1923 Cotton Consumed: cent of normal production of reporting members of the Lint ...... 507,876 576,604 566,805 Association. It was not to be expected that the heavy Linters ...... 41,698 40,281 47,296 On Hand in Consuming Establishments: buying which characterized the opening weeks of the L int ...... 1,578,272 -1,633,332 2,020,900 Linters ...... 123,099 120,034 157,533 year would continue, but largely as a result of that In Public Storage and at Compresses: buying , shipments since that time have exceeded orders, Lint ...... 2,485,009 2,966,466 2,803,304 Linters ...... 87,087 82,742 45,052 and have ranged nearer to actual production. Weather E xports: L int ...... 469,871 538,990 354,732 conditions have interfered with production, and in some Linters ...... 12,275 7,263 4,925 instances with shipments. The latest figures available, Imports ...... 48,601 47,692 66,329 however, (for the week ended March 7) show that of Active Spindles ...... 32,683,786 33,339,806 35,304,423 87 mills which reported their running time, 63 operated Cotton Growing States full time and 11 operated five days, and of the 63 Feb. 1924 J|m . 1924 Feb. 1923 Cotton Consumed ...... 349,759 391,038 356,098 which operated full time 5 operated double shifts, and On Hand in Consuming 3 others operated overtime. Establishments ...... 944,007 1,004,743 1,252,359 In Public Storage and at Preliminary figures reported to the Southern Pine Compresses ...... 2,197,578 2,667,432 2,488,145 DigitizedAssociation for FRASER up to March 15, are shown below: Active spindles ...... 16,269,204 16,346,206 16,030,159 http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis THE MONTHLY BUSINESS REVIEW 9

MANUFACTURING Stocks were larger than either of those months, and Cotton Cloth notwithstanding the decrease in orders booked, the reports showed an increase over January in unfilled Reports for February were made to the Federal orders. Cancellations were reported to be somewhat Reserve Bank by thirty mills which manufactured smaller in January.' approximately 28,350,000 yards of cloth during that Feb. 1924 compared wtih: month. This is a small increase, nearly 2 per cent, over Jan. 1924 Feb. 1923 Overals manuafctured ...... — 1.7 +11.4 the output in February last year, but was more than Stocks of overalls on hand...... + 7.9 +52.9 Orders booked ...... —15.4 —38.2 15 per cent lower than production of the same mills Unfilled orders ...... +20.5 —39.0 during January of this year, when seasonal influences Number on payroll ...... — 0.3 — 1.3 caused larger output. February shipments were smaller Brick than either the preceding month or the same month last year, and the same is true of both orders booked Brick production in February was slightly larger during the month and unfilled orders on hand at the than in January, but considerably lower than in Febru­ end of the month. Stocks of cloth were larger than at ary last year. The same is true, but to a greater the end of January or February 1923. degree, in the case of orders booked, and unfilled orders. Orders received by reporting plants exceeded The reports indicate that the mills had orders which those in January by 18.2 per cent, but were 30 per will keep them operating on an average of seven weeks. cent lower than were booked by the same plants in Reporting mills state that the demand for goods is February last year, while unfilled orders at the end very slow, that prices offered are unsatisfactory, and of February were 48.2 per cent greater than a month that there is some curtailment already with more in earlier, but 27,3 per cent lower than a year ago* prospect. Feb. 1924 compared wtih: Feb. 1924 compared wtih: Jan. 1924 Feb. 1923 Jan. 1924 Feb. 1923 Brick production ...... + 0.9 —17.8 Cloth production ...... —15.4 + 1.9 Stocks of brick on hand...... —25.7 +21.9 Cloth shipments ...... < —13.8 — 3.5 Orders booked ...... +18.2 —30.0 Orders booked ...... —15.4 —28.2 Unfilled orders ...... +48.2 —27.3 Unfilled orders ...... — 5.7 —32.6 NumberNumber on payroll ...... +!0.2 + 4.7 Stocks of cloth on hand... 4-10.2 +59.7 Number on payroll ...... + 1.6 + 1.1 Hosiery Cotton Yarn Slightly smaller production, but larger orders re­ Reports from 22 mills manufacturng cotton yarn ceived, shipments and stocks, are indicated in the follow­ reflect much the same conditions as in the manufacture ing figures compiled by the Census Bureau from reports of cloth. Prices are reported unsatisfactory, and the of 37 mills for February compared with January. Can­ demand for yarns continues dull, orders booked by the cellations were also a little larger, and unfilled orders mills during February being 6.4 per cent below January declined slightly compared with a month earlier. and 31.6 per cent lower than in February last year. Feb. 1924 Jan. 1924 Product manufactured ...... 616,258 623,108 Reporting mills produced in February 6.769,898 pounds Shipments ...... 556„081 542,632 Finished product on hand at end of yam, which was 7.8 per cent lower than in January, of month ...... 1,447,700 1,358,758 although slightly more than was produced by the same Orders booked ...... 461,742 414,578 Cancellations ...... 40,937 29,866 mills in February a year ago. Shipments also declined, Unfiled orders on hand at end but stocks showed a small increase over January, and of month ...... 1,049,828 1,161,207 were nearly 18 per cent larger than at the end of February last year. Reporting mills had orders on EMPLOYMENT hand which would keep them operating for 7.6 weeks. With the exception of slight unemployment in some Feb. 1924 compared wtih: parts of the district, and part time operations in some Jan. 1924 Feb. 1923 industrial plants, employment conditions continue on Yarn production ...... — 7.8 + 0.4 Yarn shipments ...... — 3.8 + 2.2 a fairly satisfactory basis. Practically all plants in Uunfilled orders ...... — 6.4 —31.6 Georgia are running, but some little unemployment is Stocks of yarn on hand...... + 1.8 + 17.8 Number on payroll ...... — 0.7 — 8.8 apparent. All industrial plants in Atlanta are in opera­ tion although some are on part time. There is, however, Overalls little unemployment. There is a surplus of common Reports from overall manufacturers for February labor at Augusta, and some slight unemployment at were characterized by a decline of 15.4 per cent in the Columbus and Savannah, though building operations, volume of orders booked compared with January, and of and prospective projects, are expected to keep these 38,2 per cent compared with February last year. tradesmen occupied. No great demand for farm labor Production in February was less than two per cent is noticeable. below January output, but showed an increase a£ In Florida building activities continue, and it is Digitizedmore for than FRASER eleven per cent over February a tear ago. anticipated that within the next few weeks the floating http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis 1 0 THE MONTHLY BUSINESS REVIEW

labor, which came to Florida to escape the cold weather million tons per week in January and early February in the north, will have departed for their homes. In to 9,596,000 tons for the week ended March, according Jacksonville the supply and demand for labor are about to statistics compiled by the Geological Survey. Dur­ equal. There is a slight surplus of cigar makers in ing the month there were slight improvements in Key West, and in most other places industrial employ­ market conditions accompanying the cold spells, but ment condition continue fairly satisfactory. generally the market lacked strength and the demand has gradually receded as the end of the coal year, and With a few exceptions all industrial plants in Alabama spring weather, approach. February 22nd was observed are operating in a satisfactory basis, with normal as a holiday in some of the union districts, but the quotas of employees. Iron and steel continues on an observance was not general, and the decline during upward trend. Fertilizer plants show more activity, the week ended is only partly attributable reflecting an increase in employment. Lumber and to that fact. The figure for the week ended March 8 woodworking plants and textile mills register slight is the lowest weekly output reported since the close of decreases in employment, but the majority are on a full the strikes in , excepting some weeks in time basis. Goal mining reports increases in the which production was limited by the observance of number employed, but the mines continue largely on holidays. The following figures indicate the weekly a part time basis and there is a surplus of miners. output since beginning of February:

Industrial activities in New Orleans continue on a Week Ended Tons satisfactory basis, revealing an increase in employment ...... 11.337.000 ...... 11.501.000 in the majority of local industries. Railroad shops ...... 11.139.000 maintain the same level of employment as in January. February 23 ...... 10.367.000 March 1 ...... 10.700.000 The rice milling season is nearing its end, and has re­ March 8 ...... 9.617.000 leased numbers of workers, but building construction March 15 (a) ...... 9.640.000 is steadily increasing and these tradesmen are fully (a) subject to revision employed. The production of soft coal in the United States during the first 267 days of the coal year 1923-1924 The demand for, and supply of, labor in Mississippi was 513,058,000 net tons, compared with 396,316,000 are well balanced, especially in the lumber industry, tons in the same period of 1922-23, 410,026,000 tons in while employment in textile mills declined slightly and 1921-22, and 514,200,000 tons in 1920-21. a surplus of workers exists. Favorable weather condi­ tions have permitted work on highway construction at IRON some joints. Most industrial plants are operating, The month of February brought a further increase in though some are on a part time basis. the daily rate of production and in the total output of pig iron in the United States, acocrding to statistics com­ Industrial employment conditions in Tennessee im­ piled by he Iron Age. The gain in February was more proved throughout February. Lumber mills and wood­ than two and a half times that of January, the largest working plants, and other miscellaneous industries gain since . The producton in February recovered from the decline of January, and a number amounted to 3,074,757 tons, of 106,026 tons per day, compared with 3,018,890 tons produced in January, or of other classifications showed slight gains. Coal 97,384 tons per day, and with 2,994,187 tons produced mining shows some improvements, but part time in February last year, or 106,935 tons per day. The operations prevail in a majority of the mines and a index number of production for February stands at surplus of workers exists. Building construction is 120.6, compared with 118.5 for January, and 117.5 for active and some sections report a shortage of these February 1923. workers. The number of furnaces in active operation on March 1 was 264, an increase of 16 over the number active on February ,1 but still 14 less than were oper­ COAL MINING ating March 1 last year. Production of bituminous coal in the United States The output of pig iron in Alabama was slightly Digitizedhas for FRASER declined from a level well above eleven and a half lower in* February, due in part to the shorter month, http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis THE MONTHLY BUSINESS REVIEW 11

although the daily rate of production was larger than The demand for both turpentine and rosin has been in January. The Iron Age gives the Alabama pro­ lagging all through the month, with some little im­ duction in February as 219,358 tons, compared with provement in evidence since the beginning of March. 225,556 tons produced in January, and shows that 23 The average price during February of spirits of furnaces with a capacity of 7,510 tons were active turpentine was 95% cents, the same as in January, at the end of the month, compared with 24 furnaces while the average price of the twelve grades of rosin with a capcity of 7,650 tons at the end of January, declined from $5.07% in January to $5.02% in Febru­ although local correspondents report that the same ary. Bad weather conditions in the north and west number of furnaces were active on both dates. The are said to be partly responsible for the slow demand. index number for Alabama production in February is 124.8, compared with 128,3 in* January, and 129*3 The following table shows the movement at the in February last year. Sales in Birmingham district three markets in this district: have continued equal to the make, and prices have ranged from $23-00 to $24.00. Both pressure and soil Feb. 1924 Jan . 1924 Feb. 1923 pipe makers are receiving business, and rail, wire and Receipts—Turpentine: nail mills are producing and shipping steadily. Savanah ______1,644 3,110 1,504 Jacksonville ______2,612 6,009 3,227 Local fabricating plants are making more steel, Pensacola ______822 1,669 1,083 and letters received from correspondents indicate a satisfactory outlook. Total ....._____ 5,078 10,788 5,814

The following figures, and the index numbers on Rosin: the last page of the Review, show comparisons of Savannah ______16,344 21,056 12,952 Jacksonville ______26,156 30,940 23,135 February statistics with preceding months: Pensacola ______8,110 9,975 10,557

Feb 1924 Jan. 1924 Feb. 1923 Total ___ 50,610 61,971 46,644 ^[nited States: Zf* Production 3,074,757 3,018,890 2,994,187 Shipments—Turpentine: 'q Daily rate 106,026 97,384 106,935 Savannah ______5,277 8,529 5,754 f—* Furnaces .. 264 248 278 UJ O Jacksonville 6,291 7,373 6,696 Tfrjjabama: Pensacola ... 906 3,664 3,347 •y:. Production 219,358 235,556 227,254 Daily rate 7,568 7,276 8,116 Total 12,474 19,566 15,797 Furnaces 23 24 25 >- o Eosin: the United States Steel Corpo- Savannah ______..... 51,566 50,980 29,801 29 totaled 4,912,901 tons, con- Jacksonville ______30,456 40,598 34,862 tuauing the upward movement which began in Pensacola ______14,085 9,932 21,125 December. uj Total ______96,107 101,510 85,788 m UJ cr Stocks—Turpentine: Savannah ....<.______.... 8,838 12,471 5,931 Cfc NAVAL STORES Jacksonville ______21,822 25,499 16,711 U j Pensacola ______3,488 3,572 6,596 Qsieceipts of both turpentine and rosin showed further

Ifesonal declines during February, figures for the Totals ______34,148 41,545 29,238 three principal markets of the district showing that spirits of turpentine receipts in February were less Rosin: than half those in January, while rosin receipts were Savannah ______, ... 80,727 115,949 78,122 Jacksonville ____ 128,216 • 132,516 167,598 also smaller. Stocks of both commodities were lower Pensacola ...... 52,166 58,141 36,890 than a month earlier, but turpentine stocks were some­ Digitizedwhat for larger FRASER than at the end of February 1923. ' Total 261,109 306,606 282,610 http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis 1 2 THE MONTHLY BUSINESS REVIEW

MONTHLY INDEX NUMBERS The following index numbers, except where indicated otherwise, are computed by the Federal Reserve Bank of Atlanta, and are based upon average figures for 1919. That is, average monthly figures for the year 1919 are represented by 100, and the current monthly index numbers show the relation of activity in these lines to that prevailing in 1919.

Retail Trade 6th Dist.

(Department Stores) Feb. Feb. Aug. Sept. Oct. Nov. Dec. Jan. 1924 1923 1923 1923 1923 1923 1923 1924 63.1 74.3 70.9 90.6 118.1 104.1 146.3 69.3 Birmingham ...... 97.6 92.4 97.7 119.2 168.4 155.1 209.9 100.6 Chattanooga ...... 87.9 58.9 90.2 112.9 146.5 127.2 144.1 102.7 Jackson ...... 73.7 76.6 74.8 98.9 138.4 114.0 161.8 79.4 Nashville ...... 82.1 76.9 87.3 92.1 130.5 118.0 163.8 74.3 New Orleans ...... 92.1 85.0 87.4 92.0 138.4 127.7 1.79.6 96.8 52.5 51.7 61.0 66.4 90.4 83.7 130.9 61.3 Other Cities ...... 80.0 70.6 67.1 80.2 117.9 104.0 150.0 78.2 District (43) firms) ...... 84.0 77.7 83.5 94.1 134.3 121.3 167.8 87.2

Retail Trade—U. .S (1)

Department Stores ...... 101 88 100 112 148 142 203 109 Mail Order Houses ...... 96 84 73 92 164 122 118 99 Chain Stores: Grocery ...... 185 160 171 170 191 187 185 191 Drug ...... 143 126 145 143 152 141 185 141 Shoe ...... 93 72 95 127 139 131 171 99 5 & 10 Cent....*...... 140 117 153 151 180 176 331 126 Music ...... 97 88 103 102 137 149 214 84 Candy ...... 166 133 179 176 185 174 261 154 Cigar ...... 124 110 135 140 138 134 192 119

Wholesale Trade 6th Dist.

86.6 81.5 87.4 91.4 100.7 94.7 84.1 88.7 Dry Goods ...... 77.3 80.6 94.4 111.6 103.6 80.4 45.2 77.1 Hardware ...... 82.3 74.2 85.8 86.6 102.1 89.5 78.5 90.3 Shoes ...... 54.4 61.6 71.6 73.7 82.7 72.1 36.6 48.6 Toftal ...... 81.0 78.0 87.2 93.1 100.2 81.2 69.9 83.9

Building Permits 6th Dist.

224.3 222.6 164.0 265.6 269.3 203.3 209.2

Pig Iron Production:

United States ...... 120.6 117.5 134.8 122.6 123.6 113.6 114.6 118.5 Alabama ...... 124.8 129.3 131.1 121.2 121.2 122.7 121.7 128.3

Unfilled Orders of U. S. Stefcl Corp,;n 81.9 121.5 90.3 84.0 77.9 73.9 74.2 80.1

(1) Computed by Federal Reserve Board. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis